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Locatie: Netherlands

When I was young, I delayed prosperity for my country.

donderdag, juni 07, 2012

Spain's borrowing costs edge up

Euro coin held in front of Spanish flagSpain must find billions of euros to help bolster its banking sector

Spain will try to raise money on credit markets on Thursday days after it said it was all but blocked from them.

The planned move - a test of market confidence in its ability to pay - comes amid reports Spain has been seeking a bailout from eurozone funds.

Spain's economy minister on Wednesday dampened speculation of a bailout.

The US president spoke separately on Wednesday to German Chancellor Angela Merkel and Italian PM Mario Monti to discuss economic conditions in Europe.

Barack Obama also called jointly with UK Prime Minister David Cameron for an "immediate plan" to restore confidence.

The prime minister is due to meet Mrs Merkel on Thursday to discuss the issues.

Spain will try to raise $2bn (�1.3bn, 1.6bn euros) in bonds in a test of market confidence in its ability to pay.

On Wednesday there were signs that investors were slightly more hopeful with the premium investors demanded above German bonds falling below 5 percentage points for the first time in a week.

Spain's finance minister said on Tuesday that the credit markets were "effectively shut" to his country, inflaming worries that it will not be able to avoid seeking outside help.

Spain has to find at least 80bn euros to strengthen its banks, which are struggling because of bad property loans.

Source: http://www.bbc.co.uk/news/business-18349439#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa

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